ISLAMABAD: The International Monetary Fund (IMF) has suggested Pakistan to digitalize its budget preparation and execution processes to improve fiscal monitoring and reporting to overcome deviations from the planned budgets.
In a technical assistance report to improve budget practice brought out this week, the international lender said Pakistan needed to take strong control over the budget in the coming years.
The report came as an IMF delegation led by Pakistan mission chief, Nathan Porter, completed a five-day trip to the country in which it discussed the performance of a $7 billion loan program approved in September. The IMF has said Porter’s visit is not part of the first review of the loan program, which is not scheduled to take place before the first quarter of 2025.
“An examination of Pakistan’s recent budgetary outcomes reveals substantial deviations from planned budgets,” the lender said in the report. “While these discrepancies are partially due to an unstable external environment and political uncertainties, the establishment of stronger fiscal institutions can help deliver a more credible budget, tighten its execution, and prevent policy slippages.”
The IMF pointed out that despite several reforms, the budget processes still involved significant manual and paper-based steps.
“Fully digitalized processes are yet to be prepared and implemented in the Financial Accounting and Budgeting System,” it said in the report. “The Finance Division has designed a data warehouse to store fiscal data and made available a set of dashboards for use by stakeholders, but this is hampered by the lack of timely data provided by some key entities. As a result, fiscal reporting is not yet comprehensive and timely.”
It added that regulatory framework and fiscal data governance practices, including data exchange, did not fully address these challenges.
The IMF also noted Pakistan’s public debt had increased considerably, and interest payments were now absorbing 60 percent of budgeted revenue.
However, it recognized that multiple external shocks and the unprecedented floods in 2022 buffeted the economy and the government’s fiscal position.
“These shocks have been compounded by policy slippages including unbudgeted subsidies, and delays in implementing revenue measures,” it continued, adding the authorities now had the difficult task of converting a primary deficit of 1.3 percent of GDP for FY23 into a primary surplus for FY24. It also emphasized continued fiscal restraint, while preserving essential social and development spending.
The international lender suggested the finance division to require line ministries to prepare their budget submissions within a binding budget ceiling and explain any request for additional resources.
“Consider a reorganization of the Finance Division to reduce fragmentation and improve effective decision-making,” the reported suggested. “Support the reorganization with a functional review of the Division’s structure and staffing.”
IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring
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IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring
- The international lender says budget processes still involve manual and paper-based steps despite reforms
- IMF has pointed out Pakistan’s interest payments absorb 60 percent of budgeted revenue due to public debt
T20 World Cup: ICC deputy chief in Lahore for talks after Pakistan boycotts India match
- Islamabad’s boycott over Bangladesh’s exclusion has threatened the tournament’s most lucrative game
- Bangladesh Cricket Board chief has also arrived in Pakistan and is expected to participate in meetings
ISLAMABAD: International Cricket Council (ICC) Deputy Chairman Imran Khwaja arrived in Lahore on Sunday for talks with Pakistan Cricket Board (PCB) officials, the PCB said, as the sport’s governing body strives to save a high-stakes T20 World Cup clash between arch-rivals Pakistan and India.
The development follows Islamabad’s decision to boycott the Feb. 15 Pakistan-India match in Colombo, a move to protest the ICC’s exclusion of Bangladesh from the ongoing T20 World Cup.
The controversy over Pakistan’s participation erupted after the ICC replaced Bangladesh with Scotland, following Bangladesh’s decision to not play matches in India owing to security fears.
The ICC has since requested the Pakistan Cricket Board to reconsider the decision to boycott their match against India in Colombo or they will have to forfeit the marquee game of the tournament.
“ICC Deputy Chairman Imran Khwaja arrived in Lahore,” the PCB said on Sunday, adding that he was received at the airport by the PCB chairman’s adviser, Aamir Mir.
Prior to Khwaja’s arrival in Lahore, where the PCB is headquartered, Pakistan welcomed Bangladesh Cricket Board (BCB) President Aminul Islam, who was received by PCB CEO Salman Naseer.
The two visiting officials are scheduled to meet PCB Chairman Mohsin Naqvi.
“Bangladesh Cricket Board President Aminul Islam will also take part in other meetings,” the PCB said in a statement, hinting that he will be part of the meeting with ICC’s Khwaja.
The dispute stems from the ICC’s decision to replace Bangladesh with Scotland last month after Bangladesh refused to play tournament matches in India. Dhaka’s decision followed the removal of Mustafizur Rahman from the Indian Premier League (IPL). He was bought for $1 million by the IPL’s Kolkata Knight Riders, but on Jan. 3 the Board of Control for Cricket in India (BCCI) ordered Kolkata to release Mustafizur without a public explanation but amid regional tensions.
Pakistan have boycotted the 27th match of the tournament against India, due to take place at R. Premadasa Stadium in Colombo. An India-Pakistan fixture is the sport’s most lucrative asset, generating a massive share of global broadcasting and sponsorship revenue.
The PCB has remained defiant amid reports of potential sanctions. On Saturday, the board rejected claims by Indian media that it had initiated a dialogue with the ICC to find a way out of the standoff.
“I categorically reject the claim by Indian sports journalist Vikrant Gupta that PCB approached the ICC,” PCB’s Mir said in a statement. “As usual, sections of Indian media are busy circulating fiction. A little patience and time will clearly show who actually went knocking and who didn’t.”
The standoff highlights the growing friction within the sport’s governance.
Pakistan has accused India’s cricket board of influencing the ICC’s decisions.
Defense Minister Khawaja Asif this week called for the formation of a new cricket governing body, saying the ICC, currently chaired by Jay Shah, son of India’s Home Minister Amit Shah, was being held “hostage” to “Indian political interests.”
India generates the largest share of cricket’s commercial revenue and hence enjoys considerable influence over the sport. Critics argue that this financial contribution translates into decisive leverage within the ICC.
A large part of that revenue comes from the Indian Premier League (IPL), the sport’s most lucrative T20 cricket competition, which is run by the Board of Control for Cricket in India (BCCI). Between 2024 and 2027, the IPL is projected to earn $1.15 billion, nearly 39 percent of the ICC’s total annual revenue, according to international media reports.
While the Pakistani government cleared the team to participate in the rest of the tournament, Prime Minister Shehbaz Sharif maintained that the boycott of the India game was necessary to protest the “unjust” treatment of Bangladesh.
